Trade Liberalisation, Closer Economic Relations and Intra‐Industry Specialisation
Jayant Menon ()
Australian Economic Review, 1994, vol. 27, issue 2, 31-42
Abstract Much of the growth in trade among the industrialised countries, and more recently among countries in the Asia‐Pacific region, has taken the form of intra‐industry trade (HT). Australia has historically had one of the lowest shares of IIT among OECD countries. This article examines how Australia's IIT has changed in the 1980s in response to the process of trade liberalisation and completion of the Closer Economic Relations (CER) pact with New Zealand. HT indexes are estimated for Australia's multilateral and trans‐Tasman trade for 1981 and 1991 for 132 industries using data at the 3 and 4‐digit level of the Standard International Trade Classification (SITC). The results point to a sharp increase in the share of IIT for both multilateral and trans‐Tasman trade. Industries that have undergone the largest reductions in protection levels have increased their shares of IIT quite considerably. Increased intra‐industry specialisation suggests that the short‐run adjustment costs associated with trade liberalisation are likely to be lower. If IIT continues to grow in response to the ongoing process of internationalisation of the Australian economy, then Australia's prospects for expanding its share of world trade are good.
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecr:v:27:y:1994:i:2:p:31-42
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-9018
Access Statistics for this article
Australian Economic Review is currently edited by Ross Williams, Ian McDonald and Mark Wooden
More articles in Australian Economic Review from The University of Melbourne, Melbourne Institute of Applied Economic and Social Research Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().